Slide from JPM Conference 2022 presentation. All generate blockbuster <$1bn per annum sales - in Stelara's case >$9bn per annum, and in Enbrel's case, >$4.5bn. What is Richard A. Gonzalez's approval rating as AbbVie's CEO? AbbVie has 5 focus areas for its research and products. Although investing in AbbVie isn't riskless, it is advisable based on what we know about the company. View institutional ownership trends. With a 5-year investment, the revenue is expected to be around +88.28%. Not only do these companies pay handsome dividends, they typically grow revenues every year and generate wide profit margins which leads to share price upside. This indicates that AbbVie will be able to sustain or increase its dividend. Although Wallet Investor did not provide targets for 2030, its longer-term Abbvie stock prediction expected the price to hit $300.386 in June 2027. That same month, the FDA extended the review period for Skyrizi (risankizumab), a treatment drug for moderate to severe Crohns disease in patients aged 16 and older. AbbVie's free cash flow yield is 10.5% compared to 4.3% for Johnson & Johnson . Upgrade to MarketBeat Daily Premium to add more stocks to your watchlist. AbbVie has said it expects to generate high-single-digit CAGR growth from 2025 to the end of the decade after revenues fall in 2023 due to Humira LOE. Is this happening to you frequently? AbbVie is led by CEO and Chairman Rick Gonzalez - likely the only Pharma CEO who lacks a college degree - who has successfully defended Humira from generic drug competition by adopting a controversial strategy of continually applying for new patents related to minor changes in manufacturing methods or administration, often referred to as a "patent thicket". losed Joint Stock Company FinTech Solutions, Fidelity NASDAQ Composite Index Tracking Stock Fund, Abbvie stock price analysis: Past year performance, Abbvie fundamental analysis: Q1 2022 earnings, Abbvie stock forecast: Company guidance and analysts predictions. In-depth profiles and analysis for 20,000 public companies. In this post I model AbbVie product sales to 2030 - including pipeline assets - and use discounted cash flow analysis to calculate a present day share price target. What guidance has AbbVie issued on next quarter's earnings? 2023 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. The current consensus among 24 polled investment analysts is to Buy stock in Abbvie Inc. An investment in AbbVie is not without risk, but my contention is that this Pharma is in good hands - CEO Gonzalez has made few mistakes during his near-decade in charge - and will emerge from the Humira LOE a stronger and more diverse company. Gene therapies have been a long time coming, having first been popularized in the early noughties. AbbVie, like its parent Abbot Laboratories, is a well-established dividend growth stock. The company has been increasing its dividend for 51 consecutive years, indicating the company has a strong committment to maintain and grow its dividend. AbbVie Aesthetics / Neurology revenues forecasts to 2030 (my table and assumptions) . This means that . Among its many positions is sustainable operations so it can deliver life-changing therapies to those who need them most. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. I write about Biotech, Pharma and Healthcare stocks and share investment tips. There is an element of risk to that as clinical trial failures are common, even for a giant like AbbVie, and even CEO Gonzalez may be forced to backtrack on some of his blockbuster sales projections. Without the additional patents - >130 in total - Humira would have lost its market exclusivity in 2016, but having eventually lost protection in Europe, which has resulted in a sales decline from $6.3bn in 2018, to ~$2.7bn in 2022, Humira will finally face generic competition in the US from the beginning of this year. writing - trading down slightly from its all-time high of >$160 achieved in early December last year. Zscaler, Inc Plummets, Is It Time To Buy The Dip? To be sure, AbbVie is modeling for a tough year in 2023 for the aesthetics market. According to analysts' consensus price target of $161.12, AbbVie has a forecasted upside of 3.2% from its current price of $156.06. A AbbVie Inc. (NYSE:ABBV) insider lowered their holding by 87% earlier this year, These 2 Dividend Stocks Could Be a Great Addition to Your Income Portfolio, AbbVie Can Write Diversified Growth Story Without Humira, Rest Of The Business Has Strength, Analyst Says, AbbVie (NYSE:ABBV) Receives New Coverage from Analysts at Guggenheim, AbbVie to Present at the Cowen 43rd Annual Health Care Conference, AbbVie Receives Positive CHMP Opinion for Upadacitinib (RINVOQ) for the Treatment of Adults with Moderate to Severe Crohn's Disease, AbbVie Highlights Robust Gastroenterology Portfolio with New Analyses and Data in Inflammatory Bowel Diseases at the 18th Congress of European Crohn's and Colitis Organisation (ECCO), 3 Stocks to Buy Right Now That Are Cash Cows, The painfully high price of Humira is patently wrong, AbbVie Inc. (NYSE:ABBV) SVP Sells $4,310,832.64 in Stock, StockNews.com Upgrades AbbVie (NYSE:ABBV) to "Strong-Buy", AbbVie Inc. (NYSE:ABBV) Director Sells $1,505,000.00 in Stock, Azita Saleki-Gerhardt Sells 25,000 Shares of AbbVie Inc. (NYSE:ABBV) Stock, AbbVie and Capsida Biotherapeutics Expand Strategic Collaboration to Develop Targeted Genetic Medicines for Eye Diseases with High Unmet Need, view top-rated stocks among Wall Street analysts, 1 NORTH WAUKEGAN ROAD, NORTH CHICAGO IL, 60064. Negative dynamics for AbbVie shares will prevail with possible volatility of 1.976%. The dividend payout ratio of AbbVie is 89.56%. Partnerships are with universities, medical facilities, research organizations and other pharmaceutical companies. I have not managed to match management's ambitious high-single-digit growth figures from 2025 - 2023, despite anticipating 6% growth for nearly all products in that period. Richard A. Gonzalez has an approval rating of 88% among the company's employees. I have speculatively assigned peak sales of $2bn, although it should be noted that success here is far from guaranteed, although if AbbVie did succeed with ABBV916 sales could be 2 or 3x higher than my forecast. Based on earnings estimates, ABBV will have a dividend payout ratio of 54.11% next year. The company is scheduled to release its next quarterly earnings announcement on Friday, May 5th 2023. What is the dividend yield for AbbVie? Neuroscience is one of AbbVie's most intriguing divisions and perhaps the hardest to model. Projections are based on making fundamental and technical studies of the ABBV stock price performance. Botox accounts for the bulk of the companys Aesthetics portfolio revenue and about 4% of the net as of 2022. The major market events for the week ahead right in your inbox. Always do your own research on a stocks price performance and predictions before making an investment. Migraine therapy Ubrelvy is a future blockbuster, Gonzalez believes, as is Qulipta, in the same indication. Note that analysts ABBV stock forecasts can be wrong. Neurology also looks strong although aesthetics, eye care and oncology have something to prove. The five-year dividend growth rate is just below 18%. If signs point to that happening I will likely be revising my target price upwards again, but I am playing it more conservative as nobody truly knows the scale of losses after the Humira LOE. Based on earnings estimates, AbbVie will have a dividend payout ratio of 54.11% next year. In general, it is important to pay attention to trends, both in the overall market and in the specific sector that a company is in. I wrote this article myself, and it expresses my own opinions. As of 30 June, analysts price predictions compiled by MarketBeats and long-term forecasts by Wallet Investor projected that the ABBV stock price could rise. The company is a member of the Fortune 100 and one of the Fortune 100s Best Companies To Work For. Other approved ADC's targeting the c-Met protein, a validated target in NSCLC, include Novartis Tabrecta, which has been pegged for peak sales of ~$1.5bn, which seems a realistic target for Teliso given how large the lung cancer market is - the largest of all oncology markets. (JPM Healthcare conference presentation), Skyrizi's performance has been particularly eye-catching. We're currently running a sale at my private investing ideas service, Haggerston BioHealth, where members get access to portfolios, market alerts, real-time chat, and more. Please disable your ad-blocker and refresh. All rights reserved. Investors needn't panic however - Humira's replacements are expected by AbbVie's CEO to generate even higher revenues per annum. This has been in spite of a string of macroeconomic headwinds such as the ongoing Russia-Ukraine war that has contributed to record high inflation in the US and the UK, and the companys psoriatic arthritis drug Adalimumab, known as Humira, facing biosimilar rivals in the US from 2023. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. I write about Biotech, Pharma and Healthcare stocks and share investment tips. It had an upside potential of 4.76%, based on the closing price of $152.49 on 29 June. Although management reminded analysts that "Imbruvica continues to be the total market share leader across all lines of therapy in CLL", the outlook does not look especially promising. Sales of the drug reached $19.9bn in 2018 and were $19.2bn, $19.8bn and $20.6bn in 2019, 2020, and 2021 respectively. Let's begin our analysis with the immunology division. Pessimistic target level: 151.42 Optimistic target level: 154.48 ABBV (ABBV) Monthly Stock Prediction for 2023 Full forecast for 2023 AbbVie forecast for this year The Abbvie stock forecast for 2025 had the price at $259.018. Popular online brokerages with access to the U.S. stock market include WeBull, Vanguard Brokerage Services, TD Ameritrade, E*TRADE, Robinhood, Fidelity, and Charles Schwab. The company had recorded a $4.7 billion increase in the contingent consideration liability related to Skyrizi last year. You should do your own research and never invest money you cannot afford to lose. On 14 January 2022, the FDA approved Abbvies arthritis treatment drug, Rinvoq (upadacitinib), for the treatment of adults with moderately to severely active ulcerative colitis. And it couldnt be more wrong! Investors do not seem to be taking the bait, however, as AbbVie's share price has slipped by >7% across the past month, and >5% across the past 5 days. As per management's guidance, I am modelling for $5.7bn of revenues in 2023, with growth beginning to accelerate substantially from 2025 / 26 onwards. Stock Price Forecast The 21 analysts offering 12-month price forecasts for Abbvie Inc have a median target of 165.00, with a high estimate of 200.00 and a low estimate of 135.00. Ltd., AbbVie Overseas S. r.l., AbbVie Oy, AbbVie Participaes Ltda., AbbVie Pharmaceutical Trading (Shanghai) Co. Ltd., AbbVie Pharmaceuticals B.V., AbbVie Pharmaceuticals GmbH, AbbVie Pharmaceuticals LLC, AbbVie Pharmaceuticals SCA., AbbVie Pharmaceuticals Societe Anonyme, AbbVie Polska Sp. (my table and forecasts). Skyrizi and Rinvoq will together achieve a higher peak sales figure than even Humira could manage, even while Humira is still making a substantial top line contribution, still accounting for as much of 7% of AbbVie's total sales in 2030. Below, I will outline how I see AbbVie putting the Humira LOE firmly behind it, and driving the high single digit percentage annual growth management has promised. When looking for ABBV stock forecasts, it's important to bear in mind that analysts' forecasts can be wrong. Receive regular, detailed analysis focused on biotech and healthcare stocks. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). We have also launched Skyrizi for PSA in rheumatology, where we're seeing strong utilization, which is driving accelerated share growth. If you have an ad-blocker enabled you may be blocked from proceeding. I do much more than just articles at Haggerston BioHealth: Members get access to model portfolios, regular updates, a chat room, and more. These are Immunology, Oncology, Neurology, Virology and Eye Care. In the last two years, Aurora Cannabis's Revenue has fallen from C$245.54M to C$245.25M - a 0.12% decrease. Allergan plc was an Ireland-based pharmaceutical company focused on health-oriented aesthetic products and is the owner of Botox. Invest alongside the model portfolio or simply access the investment bank-grade financial models and research. The companys full-year adjusted diluted EPS guidance excluded any impact from acquired IPR&D and milestones that may be incurred beyond the first quarter of the year, as both cannot be reliably forecasted. I have no business relationship with any company whose stock is mentioned in this article. On average, analysts rate AbbVie stock as a buy. The Large Pharma sector performed remarkably well in 2022, with the "Big 8" delivering an average ~15% gain whilst the S&P 500 index fell in value, and the biotech sector was in turmoil. We expect that to happen in 2027 with continued significant growth anticipated in the following years. The median. 16 Wall Street research analysts have issued "buy," "hold," and "sell" ratings for AbbVie in the last year. With no LOEs on the horizon, it is relatively plain sailing for the company ex-Humira, and the performance of Skyrizi and Rinvoq - to date at least - suggests management does have this massive patent cliff covered. I have no business relationship with any company whose stock is mentioned in this article. What other stocks do shareholders of AbbVie own? As we can see the immunology division consists of only 3 assets yet by my calculation, will likely account for 50% of AbbVie's revenues in 2022 (to calculate 2022 sales revenues by product, since we do not yet have final figures, I have used 9m 2022 figures and assumed Q4 revenues will be the average of the previous 3 quarters). Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. Duodopa is approved for Parkinson's Disease but Gonzalez believes that the subcutaneous non-surgical delivery system of candidate ABBV951 can "significantly expand the patient population currently addressed by Duopa", and sees the drug as yet another future blockbuster. Earnings for AbbVie are expected to decrease by -0.55% in the coming year, from $11.00 to $10.94 per share. AbbVie's mailing address is 1 NORTH WAUKEGAN ROAD, NORTH CHICAGO IL, 60064. The surge in revenues can primarily be attributed to its Allergan. The above table shows quarterly and annual product revenues going back to FY20, whilst the last 4 columns show revenue growth percentage between FY20 and FY21, then revenue growth between Q2'21 and Q2'22, the sequential (quarter on quarter) growth, followed by product sales as a percentage of revenues. Get 30 Days of MarketBeat All Access Free, Sign in to your free account to enjoy these benefits. Disclosure: I/we have a beneficial long position in the shares of BMY, GILD, ABBV either through stock ownership, options, or other derivatives. The analysts 12-month consensus ABBV stock price target was $159.75. According to 34 stock analysts, the average 12-month stock price forecast for AbbVie stock is $166.14, which predicts an increase of 7.62%. Trading CFDs is high risk and is not suitable for everyone. As well as the stock price gains AbbVie has always paid a handsome dividend - which has increased by 270% since the Pharma's inception, currently paying $1.48 per quarter, for a current yield of 4% - the highest in the large Pharmaceutical sector. When I began this post it was in my mind to give AbbVie stock a "Hold" rating owing to an underwhelming - on some levels - set of Q2'22 earnings, some concerns around high revenue generating products such as Imbruvica, Juvederm, and Restasis, the disappearance of the Women's Health division, the imminent LOE for Humira and the high levels of debt. Abbvie Inc quote is equal to 152.710 USD at 2023-02-27. Shares are consolidating with a buy. The company reported $3.60 EPS for the quarter, topping the consensus estimate of $3.54 by $0.06. Snowflake Reports Weak Guidance: Is the Growth Snowflake Melting? You should never invest money you cannot afford to lose. Morningstar: 2019 Morningstar, Inc. All Rights Reserved. I am not receiving compensation for it (other than from Seeking Alpha). The drug is now approved in severe Rheumatoid Arthritis, active Psoriatic Arthritis, moderate to severe Atopic Dermatitis, Ulcerative Colitis, active Ankylosing Spondylitis, with Crohn's Disease the next approval on the list. My calculation is that Humira revenues in 2023 will be 80% of the 2022 figure, or $16.7bn. AbbVie Inc. (NYSE:ABBV) posted its earnings results on Thursday, February, 9th. AbbVie Stock Forecast 03-06-2023. Year-to-date, the stock was up slightly more than 12% while benchmark global indices have all fallen sharply amid surging inflation, interest rate hikes and slowdown worries. Based on an average daily volume of 5,600,000 shares, the days-to-cover ratio is currently 2.1 days. Fortunately for AbbVie shareholders Gonzalez and his management team have had many more years than expected to prepare for Humira's Loss of Exclusivity ("LOE"), and it has never been the Pharma's ambition to build its business around a single, all-conquering but time-limited drug. With AbbVie seemingly very confident of approvals for all 3 of these drugs, and Gonzalez suggesting they could form the basis of a "$6 billion kind of franchise" I have modelled for such an outcome by 2030. Trial results demonstrated an overall response rate of 63% and a median duration of response of 12 months, where 39% of patients had already tried a CAR-T cell therapy. Johnson & Johnson Free Cash Flow Forecast for 2023 - 2025 - 2030. Out of the most recent ratings, BMO Capital Markets Gary Nachman raised its price target from $161 to $174 with an outperform rating, while Truist Financial analyst Robyn Karnauskas raised the Abbvie stock prediction from $118 to $135 while raising rating to a buy. Epcoritamab alone will not be sufficient to get AbbVie where it wants to be - despite some analysts believing it will be the highest grossing Pharma revenue wise by 2026. In the next year, analysts predict that Revenue will reach C$253.83M - an increase of 3.50%. This included an unfavourable impact of $0.08 a share related to acquired in-process research and development (IPR&D) and milestones expenses incurred during the March quarter. However, there are some general principles that can be followed in order to improve the accuracy of stock price predictions. It is in business to discover, develop, manufacture and market pharmaceuticals globally but in a way that best serves the needs of patients and the global community. Although Wallet Investor did not provide targets for 2030, its longer-term Abbvie stock prediction expected the price to hit $300.386 in June 2027. ABBV-916 is therefore a real opportunity for AbbVie to develop a more effective and safer drug in the same class and claim a sizeable share of a 6m patient market. Our daily ratings and market update email newsletter. As such I have modelled similar, although I have included an additional revenue stream from new products which I expect to be minor in nature but ultimately contributing an additional $1.5bn to the top line. I take the total revenue figure from each year and plug it into an income statement forecast as follows: AbbVie income statement forecast. The average ABBVIE INC stock forecast 2023 represents a 1.86% increase from the last price of $153.729995727539. Allergan was a troubled company in many ways, but there is no doubting the strength of its products and pipeline. As such I have downgraded my own growth expectations in the forecasting table above, reducing annual growth from 7.5%, to just 2.5%, after forecasting for $5bn revenues in FY22 - down 7.5% year-on-year. On the negative side of things, we can see that AbbVie is no longer breaking out sales within its Women's Health division, with revenues lumped into the "all other section, presumably. Find me at my marketplace channel, Haggerston BioHealth - model portfolio + 4 exclusive stock tips every week. CFDs are complex leveraged instruments and come with a high risk of losing money. Multidrug Resistant Bacteria Treatment Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2030) Published: March 2, 2023 at 2:55 a.m. AbbVie discounted cash flow analysis. AbbVie Inc. is a US-based biopharma company with global operations. Having dived into the numbers however and looked ahead to 2030 through the eyes and guidance of management, my conclusion is that investors can probably buy AbbVie stock at current price with reasonably high hopes of making a decent ROI - perhaps 15 - 20% in the next 12 - 18 months, whilst also benefiting from a generous dividend. After 2022 Humira's row is shaded yellow to signify patent expiry. AbbVie saw a increase in short interest in February. Enjoy your holiday weekend and catch up on our most read stories this week. The next two approvals - for Navitoclax in Myelofibrosis and Teliso V in non squamous non-small cell lung cancer ("NSCLC") - are anticipated by management in 2024. AbbVie could be the biggest global Pharma by revenue generation in 2028.

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